A formula for saving

[stella7]

The best way to save is to pay yourself first and then afterwords,the land lord,groceries and all those expenses come.If you try to do it the other way round then there will be nothing to save at all.

[mamab]

It would be best if you could have a specific amount deducted from your check and automatically put into your savings account, if your company does that kind of thing.

So, true, if you don't pay yourself, there WON'T be anything left, unfortunately.

[randomthoughts1875]

You both make a great point. It's easy to spend the money you intended to save if you don't take care of it first. If your company doesn't offer an option for this you can set up a regular transfer with your banking institution. You let them know the dates, say every Friday, and the amount, say $25, and they will automatically transfer this amount from your checking to your savings account. What percentage of your weekly take home pay do you pay yourselves?

[gblued]

I usually get paid online through PayPal, so what I do is leave about 25% of my money in my PayPal account when I go to withdraw. That money is later transferred to a separate savings account. It is way easier to save money when you don´t actually have it in your hands!

[mamab]

Quote:

Originally Posted by gblued

I usually get paid online through PayPal, so what I do is leave about 25% of my money in my PayPal account when I go to withdraw. That money is later transferred to a separate savings account. It is way easier to save money when you don´t actually have it in your hands!

I'm guessing that you do some sort of freelance work? I've never heard of a company actually paying their employees through PayPal. Do you get charged fees for getting paid that way?

[Calypso]

Quote:

Originally Posted by gblued

It is way easier to save money when you don´t actually have it in your hands!

This is SO true, gblued! For instance, I have a box where I throw extra change at the end of the day, telling myself I'll put that money into savings. A couple of days ago, I went to cash it in and it was worth thirty dollars. So what did I do? I stopped to buy a book and a meal at McDonald's. When I got done, I had two bucks left. Bad, Calypso! Bad!

[katharina]

Quote:

Originally Posted by gblued

I usually get paid online through PayPal, so what I do is leave about 25% of my money in my PayPal account when I go to withdraw. That money is later transferred to a separate savings account. It is way easier to save money when you don´t actually have it in your hands!

That's how I get most of my paychecks, too. (via paypal) I don't really keep it separate and save a certain amount, but now that you mention it, it's a great idea and I'll have to look into that!

[moonmagick]

I have 3 accounts. One for savings, one for bill paying, and one for everything else. All of the money goes into the saving account and then it gets moved over as needed accordingly. It seems to work for me.

[PiscesGirl]

I prefer paying the bills first and me last. I know they write the other way around but I think that doesn't work if you get a high bill somewhere. What are going to do? Still pay yourself? I've been financially sucessful paying my bills first and sacrificing more. Life can be enjoyed without always needing money. I feel better when I have no bills. For me, it's called finacial independence and that is priceless! Guess that's the Pisces in me.

[mamab]

We generally pay ourselves last, too. I'd much rather have the money in hand to pay a bill than have to pay late charges for not paying it on time.